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CHAPTER 2: CUSTOMER-BASED BRAND EQUITY - Coggle Diagram
CHAPTER 2:
CUSTOMER-BASED BRAND EQUITY
Brand Knowledge
Definition
• Brand knowledge is the key to creating brand equity.
• Brand knowledge consists of a brand node in memory with a variety of associations linked to it.
2 Components
Awareness
• Brand recognition
• Brand recall
image
• Strong, favorable, and unique brand associations
The Four Steps of Brand Building
Ensure identification of the brand with customers and an association of the brand in customers’ minds
Establish the totality of brand meaning in the minds of consumers
Elicit the proper customer responses to the brand identification and brand meaning
Convert brand response to create an intense, active loyalty relationship between customers and the brand
Customer - Based Brand Equity Pyramid
a. Salience
b. Perfomance
c. Imagery
d. Judgments
e. Feelings
f. Resonance
Implications / Effect
• Customers own brands.
• Don’t take shortcuts with brands.
• Brands should have a duality.
• Brands should have richness.
• Brand resonance provides important focus.
Guideline to max customer equity
• Invest in highest-value customers first
• Transform product management into customer management
• Consider how add-on sales and cross-selling can increase customer equity
• Look for ways to reduce acquisition costs
• Track customer equity gains and losses against marketing programs
• Relate branding to customer equity
• Monitor the intrinsic retainability of your customer
• Consider writing separate marketing plans—or even building two marketing organizations—for acquisition and retention efforts